[announce] Arbortext Reports Record Fourth Quarter Revenue andQuarterly License Revenue Growth of 37%

[Beth Ambaruch <bea@arbortext.com>]

Arbortext Reports Record Fourth Quarter Revenue and Quarterly License
Revenue Growth of 37%


ANN ARBOR, Mich., February 10, 2003 -- Arbortext, Inc., the leading global
provider of XML-based software for content creation, editing and
multichannel publishing to Web, print, CD-ROM and wireless devices, today
reported record fourth quarter and 2002 revenue.  Software license revenue
grew 37% for the fourth quarter, and 20% for the year ended December 31,
2002.

”We’re pleased to report another quarter of outstanding operating
 results,” said Raymond Schiavone, president and CEO of Arbortext.  “We
performed very well with respect to every key financial metric, including
revenue growth, profitability and cash flow.  Our continued product
innovations, strong value proposition and the rapid adoption of XML-based
applications in markets such as life sciences, government and publishing
are driving Arbortext’s continued success.  I’m excited about the
opportunities ahead of us as we enter 2003 with this tremendous momentum.”

Fourth Quarter and Fiscal Year 2002 Highlights
·	Software license revenue grew 20% as compared to 2001.
·	European revenue grew 44% as compared to 2001.
·	E-Content Engine (E3) license revenue grew 97% as compared to 2001.
·	Revenue from the life sciences and government vertical industries more
than tripled in 2002 as compared to 2001.
·	Revenue backlog – including deferred revenue on our balance sheet and
our new business pipeline – grew 40% when compared to 2001.
·	Significant orders were received during the fourth quarter from new and
existing customers, including American Association for Cancer Research,
Aventis, Boeing, Bombardier, Canadian Pharmacists Association,
Caterpillar, Computer Sciences Corporation, DaimlerChrysler, Deere &
Company, EUCOM Joint Analysis Center, GlaxoSmithKline, Guidant, Houghton
Mifflin, Lexis-Nexis, Northrop Grumman, Schlumberger, Revisor of
Statutes-Minnesota Legislature, West Publishing, and Williams
International.
·	Recognized in EContent Magazine’s “Content 100” for the second
consecutive year.
·	Received Computerworld’s 2002 Innovative Technology Award for the
company’s work with US Airways in pioneering more efficient aircraft
service and maintenance processes.
·	Honored by the Michigan Economic Development Corporation for the company
’s product innovation, success in the marketplace and contributions to
Michigan’s economy.

About Arbortext
Arbortext is the leading global provider of XML-based software for content
creation, editing and multichannel publishing to Web, print, CD-ROM and
wireless devices.  Arbortext’s software is installed at over 1,300
organizations worldwide. Current customers include American Express
Financial Services, Audi, Boeing, Bombardier, British Aerospace,
Caterpillar, DaimlerChrysler, Ericsson Telecom, Ford, General Electric,
GM, IBM, International Thomson Publishing, Lucent, Nokia, Nortel Networks,
PeopleSoft, Pfizer, Ricoh, Sun Microsystems, Toyota, United Airlines,
Volkswagen, and Volvo. Arbortext is a founding member and active
participant in the XML Activity of the World Wide Web Consortium (W3C).
Headquartered in Ann Arbor, Michigan, USA, Arbortext has offices around
the world.  For more information please visit http://www.arbortext.com.
# # #

Contact: 	Beth Ambaruch, APR		David Stone
	  	Arbortext, Inc.			Ketchum
	  	+1 734.327.6014			+1 312.228.6967
	 	bea@arbortext.com			david.stone@ketchum.com

		Press room:  http://www.arbortext.com/html/press_room.html